Property investment options in Spain

When considering investing in Spanish property, there are various options available, each presenting its opportunities and considerations. Options range from the obvious to anything from investment funds to online investment platforms, fractional ownership and tokenisation. However, the most common investment types for foreigners are what one might call “lifestyle investments”, ie buying to rent, long-term capital appreciation or short-term investments, typically via flipping or investing in off-plan projects.

Tip #1 Location is key 

The property's location is crucial for a good investment. You want to buy in an area that is popular and likely to remain popular in the long term.

Tip #2 Consider flexibility

Look for properties that offer flexibility in terms of usage. Properties that can be used for both short-term and long-term rentals, or for personal use, offer more options for income.
 

Tip #3 Invest in upgrading your property

Ensure the property is in good condition and well-maintained. You may need to invest in renovations or upgrades to make it attractive to renters.

Tip #4 Amenities matter

Consider the amenities of the property, such as a heated pool, air conditioning, satellite TV, and internet access. These features can make your property more appealing to renters.
 

Tip # 5 Focus on walkability

Properties that are within walking distance to bars, restaurants, and other amenities tend to be more attractive to renters.

Tip # 6 Invest in professional photos

High-quality photos of your property can make it stand out on rental websites and attract more bookings.
 

Consider the needs of different renters

Think about how different types of renters, like digital nomads or families, might use the property, and cater to their needs.
 

Get clued up on licensing and regulations

Be aware of the local licensing requirements and regulations for short-term rentals in your area. Consult with a lawyer to ensure compliance.
 

Tip # 9 Consider ongoing costs

In addition to the property purchase price, be prepared for ongoing costs like property management fees, advertising fees, and community fees.
 

Tip # 10 Pick a location with year-round rental potential

Consider properties in areas with year-round rental potential, as the Costa del Sol becomes less seasonal and attracts tourists and renters throughout the year.

Before considering investment in Spanish property, it's crucial to seek the guidance of professionals to mitigate potential risks. Navigating the complexities of the Spanish property market requires careful analysis and understanding of local regulations and market dynamics. Recent changes to regulations on a national, regional and in some cases local level, make it more important than ever to seek professional advice before investing in Spanish property.

With the right guidance, investing in Spanish property can be very lucrative. Ready to start your property search?